Mayor Olivia Chow is poised to unveil a budget designed to project fiscal restraint as Toronto heads towards a fall election. This shift comes after implementing some of the most significant property tax increases in recent memory – a 9.5% jump in 2024 and a further 6.9% planned for 2025.
The proposed budget includes a modest 0.7% property tax increase, coupled with the standard 1.5% city building fund levy, resulting in a combined 2.2% increase. Chow has publicly acknowledged the financial pressures facing residents, stating she understands the struggle to cover essential expenses after rent, groceries, and bills.
However, the city’s own spending habits contribute significantly to Toronto’s high cost of living. Despite this, Chow is framing the budget as one of austerity – a term typically reserved for those advocating spending cuts. This strategic positioning raises questions about her true commitment to lower taxes.
A tax increase of this magnitude hasn’t been seen since 2021, with only 2016 under former Mayor John Tory witnessing a smaller rise in the last decade. This budget represents a clear political maneuver, designed to appeal to voters ahead of the upcoming election.
Since assuming office in mid-2023, homeowner tax bills have already risen by 17%. This new proposal would bring the cumulative increase to 20% during her tenure. Beyond property taxes, Chow’s administration has also increased parking fees, water and waste rates by 25%, and implemented higher taxes on luxury homes, vacant properties, and foreign buyers.
Critics suggest Chow has a consistent pattern of increasing taxes and fees, seemingly reversing course only when an election looms. The budget presented on Thursday is officially labeled as a “staff budget,” a claim intended to distance Chow from its contents. However, it’s widely believed that a staff with similar political leanings would not have proposed a significantly larger tax hike.
Chow has remained ambiguous about her plans for re-election, hinting at a possible departure while simultaneously taking actions that suggest otherwise. This tactic mirrors a strategy previously employed by John Tory, delaying a formal announcement to maintain political flexibility.
Meanwhile, John Tory is signaling a potential return to the mayoral race, making appearances at events typically reserved for candidates. Councillor Brad Bradford, who announced his candidacy last October, is prepared to highlight the 34% increase in property taxes over the past five years under both Tory and Chow, arguing that service improvements haven’t kept pace.
Thursday’s budget presentation isn’t simply about finances; it marks the unofficial launch of the campaign to become Toronto’s next mayor. The coming months promise a heated debate over the city’s financial direction and the priorities of its leadership.
